Telstra

Telstra Corporation Limited
Public company
Traded as ASX: TLS
NZX: TLS
OTC Pink: TLSYY
Industry Telecommunications, Media
Founded 12 June 1975[1]
Headquarters Telstra Corporate Centre
Melbourne, Australia
Area served
 Australia (full product set) & Global (selected corporate services)
Key people
 Andy Penn (CEO)
Warwick Bray (CFO)
Catherine Livingstone (Chair)
Products Fixed line and mobile telephony, Internet and data services, network services, digital television
Revenue Increase A$26.3 billion (2014)[2]
Profit Increase A$4.3 billion (2014)[2]
Total assets Increase A$39.36 billion (2014)[2]
Total equity Increase A$13.96 billion (2014)[2]
Number of employees
 31,931 (2014)[2]
Slogan It's How We Connect
Website www.telstra.com

Telstra Corporation Limited (known as Telstra) is Australia's largest telecommunications and media company which builds and operates telecommunications networks and markets voice, mobile, internet access, pay television and other entertainment products and services.

Telstra has a long history in Australia, originating together with Australia Post as a government department, the Postmaster-General's Department. Telstra is now fully privatised and has been undergoing a change program to become more customer focused under its recent CEO, David Thodey. New CEO Andy Penn is expected to increase the focus on growth in international markets.

The federal government's National Broadband Network (NBN) is causing changes to the industry and will see the company progressively sell its copper and HFC networks to NBN Co.

History

Telecom Australia logo, 1975-1993.

Australian telecommunications services were originally controlled by the Postmaster-General's Department (PMG),[3] formed in 1901 as a result of Australian Federation. Prior to 1901, telecommunications were administered by each colony. On 1 July 1975, separate commissions were established by statute to replace the PMG. Responsibility for postal services was transferred to the Australian Postal Commission (Australia Post). The Australian Telecommunications Commission (ATC), trading as Telecom Australia, ran domestic telecommunication services.

In 1989, the ATC was reconstituted as the Australian Telecommunications Corporation.

In 1992, the Overseas Telecommunications Commission, a separate government body established in 1946, was merged with the Australian Telecommunications Corporation into the short-lived Australian and Overseas Telecommunications Corporation (AOTC) which continued trading under the established identities of Telecom and OTC. The AOTC was renamed to Telstra Corporation Limited in 1993. The name "Telstra" is derived from the word Telecommunication Australia (TEL from Telecommunication and STRA from Australia). The corporation then traded under the "Telstra" brand internationally and "Telecom Australia" domestically until uniform branding of "Telstra" was introduced throughout the entire organisation in 1995.

Telstra has faced competition since the early 1990s from Optus (Australia's second largest communication company) and a number of smaller providers. It retains ownership of the fixed-line telephone network, as well as pay TV and data cable network Foxtel. Other companies offering fixed-line services must therefore deal with Telstra, except Optus, TransACT and a few others who have installed their own infrastructure.

Overseas Telecommunications Commission

OTC logo
OTC dish at Ceduna, South Australia.

The Overseas Telecommunications Commission (OTC) was established by an Act of Parliament in August 1946.[4] It inherited facilities and resources from Amalgamated Wireless Australasia Limited (AWA) and Cable & Wireless, and was charged with responsibility for all international telecommunications services into, through and out of Australia.

On 1 February 1992, it was merged with Australia's domestic telecommunications carrier, the Australian Telecommunications Corporation Limited ("Telecom"), to create the Australian and Overseas Telecommunications Corporation Limited (AOTC). The new organisation underwent a corporate identity review and was subsequently renamed Telstra Corporation Limited ("Telstra") for international business in 1993 and domestic business in 1995.[3]

When it was established in 1946, the OTC inherited facilities that had been depleted during World War II and faced rising costs and falling profits.

Throughout rapid developments in undersea cable networks, global satellite systems, and burgeoning digital technologies, the OTC maintained a keen watch over its services to ensure continued quality. It also maintained and developed its links with maritime services, one of the initial arms of Australia's international telecommunications network.

Privatisation

Telstra was privatised in three different stages, informally known as "T1" ($3.30), "T2" ($7.40) and "T3" ($3.60) in 1997, 1999 and 2006 respectively.[3][5] In T1, the government sold one third of its shares in Telstra for A$14 billion and publicly listed the company on the Australian Stock Exchange.[5] In 1999, a further 16% of Telstra shares were sold to the public, leaving the Australian government with 51% ownership. In 2006, T3 was announced by the government and was the largest of the three public releases, reducing the government's ownership of Telstra to 17%.[6] The 17% remainder of Telstra was placed in Australia's Future Fund, which will provide superannuation and pensions for Australia's public servants.[7] In 2009, the Future Fund sold off another $2.4 billion worth of shares reducing the government's stake in Telstra to 10.9%.[8] In August 2011, the Future Fund sold its remaining "above market weight" Telstra shares, effectively completing Telstra's privatisation.[9]

With over one million shareholders, Telstra is currently the most widely held ASX listed company.[10]

National Broadband Network

On 26 November 2008, Telstra submitted a non-complying tender issued by the federal government to build a National Broadband Network, a 12-page letter proposing a $5 billion broadband network covering between 80 and 90 percent of the Australian population in major cities, despite the tender requiring 98 percent coverage.[11][12]

As a result, Telstra was removed from the National Broadband Network RFP process on 15 December 2008.[13] In response, Telstra has announced that it will raise speeds on its existing Next G network and HFC "cable" network so that they both offer higher speeds than the RFP for the NBN requires.[14] Following Telstra's exclusion from the National Broadband Network bidding process Telstra's share price suffered the biggest one day percentage fall in its history.[15]

NBN Co signed a definitive agreement with Telstra on 23 June 2011, estimated to be worth A$9 billion post-tax net present value,[16] building upon the signing of a financial heads of agreement a year beforehand.[17] Telstra agreed to "disconnect"[18] its Internet customers from the copper and hybrid fibre-coaxial networks in areas where FTTP has been installed, and agreed to lease dark fibre, exchange space and ducts to NBN Co. As part of the agreement, Telstra would not be able to market their mobile network as an alternative to the NBN for a number of years.[16] Telstra remains the owner of its networks.[19] On 18 October 2011, Telstra shareholders overwhelmingly approved the deal.[20]

On 14 December 2014 it was announced that in a A$11b renegotiated deal Telstra will transfer ownership of its copper and hybrid fibre-coaxial (HFC) networks to NBN while disconnecting premises from these networks. This ownership allows NBN Co to use these networks "where it sees fit in for its multi-technology NBN rollout."[21]

Strategy and execution 2010 onwards

Under the leadership of David Thodey, Telstra embarked upon a transformation agenda to become more sales and service focused. As part of that, an ambitious customer service agenda was defined.[22]

In 2014, Telstra was named "most respected company" by the Australian Financial Review newspaper.[23]

Market share recovery

Early in 2010, Telstra announced the creation of a $1 billion "fighting fund" to be used in a concerted effort to win back market share in key product categories. This effort seems to have paid off with strong sales momentum announced in February 2011.[24]

Customer service recovery

As part of its new strategy, Telstra announced that its "goal is for customer service to be fundamental to everything we do".[25]

The following table shows total complaints handled by the TIO, and of those, the ones made against Telstra.

Year Total complaints Complaints about Telstra Source
2010 167,772 78,611 [26]
2011 197,682 78,949 [27]
2012 193,702 69,991 [28]
2013 158,652 57,298 [29]
2014 138,946 58,009 [30]
2015 124,417 55,529 [31]

Telstra Digital

In February 2011, Telstra announced the formation of Telstra Digital under the leadership of Gerd Schenkel who was hired from National Australia Bank/UBank.[32][33][34] Telstra Digital's initial purpose was to improve the use of digital channels for customer service. In March 2011, Telstra Digital launched new mobile phone plans that included electronic bills and payments and levy a $2 charge for paper bills.[35] In April 2011, Telstra Digital relaunched its web homepage design.[36] In July 2011, Telstra Digital launched "CrowdSupport", an online forum to crowd source customer service.[37] As of July 2013, Telstra's "CrowdSupport" had 65,000 members and 77,000 posts.[38] It was also cited as an example of "scaling at the edge" by Deloitte's Centre for the Edge.[39]

In August 2011, Telstra Digital announced expansion of customer service into social media with 24/7 coverage.[40] In June 2013, Telstra was ranked ninth in large Australian companies in establishing a presence on Facebook,[41] and in May 2013 Telstra was ranked fifth globally in the quality of its customer service on Facebook.[42] As of August 2013 Telstra 24/7 was ranked #1 in the quality of its customer service within Australia, ousting Vodafone and Optus, which trailed at third and fourth place, respectively.[42]

By November 2012, Telstra claimed 140,000 live chats for the month and a growth rate of this service of 600% p.a.[43] In October 2013, Telstra announced that it had grown its Live Chat workforce to 600 and its social media workforce to 30.[44]

In September 2011, Telstra Digital launched a new account services portal to help achieve its goal of managing 35% of Telstra's transactions.[45]

In October 2011, Telstra Digital announced a new mobile smartphone optimised version of its website.[46]

In November 2011, Telstra Digital launched an iPhone app on a trial basis[47] as well as a new online mobile phone shop.[48] In July 2012, Telstra Digital launched smartphone and Facebook apps for customers to manage their Telstra accounts[49] and in November 2012, Telstra claimed that over 700,000 customers had downloaded those apps.[50] In August 2013, Telstra revealed that the apps reached 2.5 million downloads.[51]

At a results announcement, CEO David Thodey remarked that "the group's new online strategy was delivering" in the context of a 28% reduction of inbound service calls.[52] Telstra estimated that its digital program will provide productivity benefits of $100 million in the 2013 financial year from lower printing costs, decreasing commissions to third parties, and reduced dependence on call centre staff.[53]

In October 2012, Telstra's CEO David Thodey stated, "The rise of online and social media had 'fundamentally changed the way' which the company communicated with its customers".[54] In a 2015 Deloitte report, Telstra disclosed that its "CrowdSupport" service community had generated 200,000 pieces of user-generated content.[55]

In December 2012, Telstra published a white paper describing the broad impact of the digital economy and what firms in traditional sectors can do to deal with its impact.[56]

In February 2013, Telstra introduced the ability to pay its bills via PayPal.[57] And in June 2013, Telstra launched a new website, including the ability for customers to link their online accounts to their Facebook identity.[58][59]

In December 2013, Telstra announced, as part of its Disability Action Plan, its intentions to remove all "captchas" from its websites.[60]

In 2013, Telstra launched a new loyalty scheme called "TELSTRA THANKS" which allows customers to buy discounted movie tickets, music and sports tickets on its website.[61][62] As part of this program, Telstra streamed live the Bon Jovi concert in December 2013 on its website.[63]

In October 2013, Telstra launched a new "budget" broadband brand called "Belong".[64]

Telstra's budget broadband brand
Belong, Telstra's budget broadband brand

In March 2014, Telstra announced a new digital development program called "Digital First" with a stated aim to conduct 65 to 70 percent of its transactions online.[65] Telstra published a white paper sharing some key metrics of its digital program:[66]

Metric 2011 2013 2015 June 2015
Digital service transactions share 26% 44% 50% 52%[67]
Digital customer contacts per month 10m 23m 33m ('15 monthly average)
MyAccount users 0.5m 2.6m Not disclosed
Regular 24x7 mobile app users 0.0m Not disclosed 2.1m 2.3m [67]
Digital payments transaction share Not disclosed Not disclosed 75%
Digital prepaid recharge share Not disclosed Not disclosed 50%
Monthly live chat sessions Not disclosed Not disclosed Not disclosed 350,000 [67]

In June 2014, Telstra announced it was working on a new system to book and track call outs from its technicians.[68] In September 2014, Telstra announced the opening of a "Digital Transformation Centre" in Sydney to design and built new digital tools for its service systems.[69][70]

In June 2014, Telstra disclosed that it had 3 Million customers on "electronic billing" saving it $3 Million per month in cost.[71] Telstra also mentioned that live chat accounted for 10% of total contact centre activity.[68]

In June 2014, Telstra released a local marketing app called "Telstra Treats" on iPhone and Android.[72]

Since 2012, Telstra has hosted the annual "Australian Digital Summit", an industry event.[73]

In June 2015, Telstra announced that "more than 50 percent of all service transactions were done digitally".[74]

In September 2015, Telstra announced that its social service team had reached a cumulative 1 Million customer care responses [75]

In December 2015, Telstra Digital launched customer service on Periscope. [76]

Expansion of retail network

In February 2011, Telstra announced the creation of an additional 100 retail stores within three years.[32]

Telstra Store in the Sturt Mall in Wagga Wagga

Telstra owns and operates a series of retail stores known as Telstra Stores. Some are directly owned and operated by the Telstra Corporation and some are operated by licensees.[77]

The carrier opened the world's first Android store, called "Androidland", on Bourke Street, Melbourne, Australia, in December 2011.[78]

These developments built on Telstra's T[life] concept stores it had launched in the early 2000s.[79]

New brand

Telstra's old logo
Former logo of Telstra, 2006-2011

In October 2011, Telstra launched a new brand identity and colour scheme.[80] The new identity launched with the slogan "It's how we connect", and features the "T" from the previous logo in a variety of colours. This was followed by a "brand refresh" in February 2014.[81] In 2013, Telstra was assessed as Australia's third most valuable brand.[82]

Sponsorships and awards

Telstra and Nintendo Australia made a joint venture to establish Wireless Wi-Fi Hotspots in restaurants around Australia so Nintendo DS users could connect to the internet to view HTTP/HTTPS pages on Nintendo's Nintendo DS Browser and Nintendo DS games that were Nintendo WFC enabled.[83]

Telstra is a major sponsor of the V8 Supercars car racing championship through its BigPond brand and directly sponsors the Sydney Telstra 500 event, the final round of the series held at Sydney Olympic Park.[84]

In the past, Telstra had naming rights to the Telstra Dome in Melbourne, but lost these rights to Etihad Airways, the national airline of the United Arab Emirates, on 1 March 2009.[85] Telstra is also the naming rights sponsor of the National Rugby League Premiership. Telstra is also the principal sponsor of Swimming Australia. They also sponsored the Minardi team for the 2002 F1 season, and the Rally Australia 2006 Championships.[86]

In addition to its professional sponsorship Telstra supports community and sporting groups through its Telstra Foundation.

Telstra also has the naming rights (under TelstraClear) for the TelstraClear Pacific events centre in Manukau City, New Zealand.[87][88]

Telstra sponsors numerous awards around Australia, including the Australian Business of the Year award, the MYOB Small Business Award, and the National Aboriginal & Torres Strait Islander Art Award (NATSIAA) which has become known as the Telstra Award.[89] Notable past winners include Vaxine,[90] APS Plastics,[91] and eWAY.[92]

Share price development

In November 1997, the Australian government sold the first tranche of its Telstra shares, 4.29 Billion shares, publicly at a price of $3.40 per share to institutional investors and $3.30 to retail investors. This sale is commonly referred to as "T1".[93] In October 1999, the Australian government sold the second tranche of its Telstra shares under the "T2" program for $7.80 per share to institutional investors and $7.40 to retail investors.[93] In November 2006, the government sold a third tranche of its shares, "T3", at $3.60 per share.[94]

Since its privatisation, Telstra shares have hit a low of just over $2.50 per share in late 2010.[95] Since then, Telstra shares have risen to $5 per share in December 2013 [95] and $6 per share in December 2014.[96]

In February, Telstra raised its dividend from 14c to 14.5c per share.[97]

Sale of Sensis

In January 2014, Telstra announced its intention to sell 70% of Sensis to Platinum Equity for $454 million.[98] Sensis was said to have once been "one of Telstra's most lucrative businesses" and reportedly "has been under pressure in recent years amid competition from more agile digital alternatives such as Google".[98]

In February 2014, Telstra was reportedly seeking to reduce Sensis employment by 400 to 1,000 positions.[99][100]

New health business unit

In October 2014, Telstra launched a new health business unit.[23] The company bought the British firm Dr Foster Intelligence in March 2015 for between $40 million to $50 million.[101]

National Broadband Network (NBN)

In December 2014, Telstra signed an agreement with the federal government's NBN Co. This agreement is said to retain the $11b value for Telstra of the original agreement from October 2011 and will see the company progressively sell its copper and HFC networks to NBN Co.[102]

New CEO appointed

On 19 February 2015, Telstra announced that CEO David Thodey will retire on 1 May 2015 and be replaced by successor Andy Penn.[103] Penn indicated new focus on growth in international markets.[104]

Company Performance (Financial Year)

2015 - Although the headline numbers were uninspiring, with sales and earnings before interest, tax, depreciation and amortisation (EBITDA) each up 1%, on an underlying basis (excluding CSL, which was sold last year) those numbers were up 6% and 4%. Management maintained full-year guidance for 'broadly flat' EBITDA, which would amount to 3% growth excluding CSL. The Mobile EBITDA margin edged up one percentage point to 40%, with higher promotional expenses due to the iPhone 6 launch almost offsetting the increases in ARPU. Putting it all together, mobile logged another excellent performance, with EBITDA increasing 12% to $2.1bn.[105]

Products and services

Fixed line and mobile telephony

Telstra mobile phone base station in Wireless Hill Park, Western Australia.

Telstra is Australia's incumbent and largest provider of fixed-line services. These include home phone, business and other PSTN products.

Telstra outsources a significant portion of network installation and maintenance to private contractors and joint ventures, such as ABB Communications and STCJV (Siemens Thiess Communications Joint Venture).[106]

Telstra also owns and maintains the majority of Australia's public telephones. In 2006, Telstra announced it would remove many of the phones, citing vandalism and the increasing adoption of mobile telephones.[107]

Telstra Mobile is Australia's largest mobile telephone service providers, in terms of both subscriptions and coverage.[108][109] Telstra operates Australia's largest GSM and 3G UMTS (branded as Next G) mobile telephony networks in Australia,[110] as well as holding a 50% stake in the 3GIS Ltd 2100 MHz UMTS network infrastructure, shared with Hutchison (Three). As of September 2007, Telstra had an estimated 9.3M mobile subscribers.[108] Telstra Mobile services are available in post-paid and prepaid payment types, known as Telstra Pre-Paid (formerly communic8 Pre-Paid).[111]

Telstra's GSM network was the first digital mobile network in Australia. It was launched in April 1993 on the 900 MHz band as "Telstra MobileNet Digital".[112] The GSM network has carried the majority of Telstra's mobile subscribers for the last 10 years and has seen numerous upgrades. 1800 MHz capacity channels were added to the network in the late 1990s as well as GPRS packet data transmission capabilities. As part of the UMTS Next G deployment, the GSM network was also upgraded to a full EDGE data transmission capability in 2006 providing data transmission capabilities greater than 40 kbit/s on its GSM network.[113]

In 1981, Telstra (then Telecom Australia) was the first company to provide mobile telephony services in Australia. The first automated mobile service operated in the major capital cities on 500 MHz using the '007' dialling prefix. This network only provided "car phone" capabilities to subscribers as portable hand-held terminals were not practical at that time. The first cellular system in Australia offering portable hand-held phones was launched by Telstra in 1987 using the AMPS analogue standard on the 800 MHz band. This network at its peak had over 1 million subscribers, but was mandated by the government to be closed down by the year 2000, partially due to privacy concerns which resulted from the AMPS technology, but also because of arrangements undertaken to secure sufficient interest in the GSM network licenses offered in 1992 to competitors. A license condition placed on Telstra to maintain an equivalent coverage footprint at the time resulted in Telstra deciding to deploy an IS-95 CDMA network in its place.

Telstra owns 7,400 Next G Base Stations.[114]

Internet

Wholesale

Telstra logo on the side of an exchange building.

Telstra Wholesale[115] provides products such as Data, Mobile, Voice, and other Facilities (including Co-location and Duct Access)[116] to other companies and organisations for re-sale.[117] Telstra Wholesale also provides operational support for its customers,[118] and facilities for international customers such as International Data Transport and IP Transport.[119]

Due to Telstra's position as Australia's incumbent telecommunications provider, Telstra Wholesale is the incumbent and dominant wholesaler of ADSL services to other Internet Service Providers. Telstra installed the first DSLAMs in exchanges prior to 2000, and began wholesaling access in late 2000.[120] Telstra Wholesale has a comprehensive network of ADSL DSLAMs (the largest in Australia) and allows competitors access to each Telstra DSLAM at up to ADSL2+ speeds if available, and at ADSL1 speeds should 2+ be unavailable.

Since 2013 telstra has wholesaled its 3G network.However the wholesale product only gives access to 7000 of telstra's over 8000 base stations.

Retail internet (Bigpond)

Telstra provides internet services for personal and business clients, through its internet service provider (ISP), BigPond. BigPond provides internet products over various delivery methods, including ADSL, Cable Internet, Dialup, Satellite, and Wireless Internet (through the Next G network). At the end of the 2007 financial year, BigPond had over two million broadband subscribers.[121] The existing customer base of BigPond Wireless is currently being migrated over to the Next G network, which offers higher speeds and greater coverage. In 2007 a survey of 14,000 people by PC Authority magazine found BigPond users rated poorly for customer service, and less than a third considered their service value for money. However, BigPond argued that the survey's structure had encouraged people to provide extreme opinions.[122] In January 2009, Telstra was ranked as the top Australian ISP in terms of performance by Epitiro.[123]

Since 2013, the BigPond brand has been discontinued and merged with Telstra.[124]

Cable internet

Telstra owns and operates the largest cable internet network in Australia. Telstra Cable operates in selected cities and areas of Australia including (Melbourne, Brisbane, Canberra, Sydney, Perth, Adelaide and the Gold Coast), providing downstream speeds of up to 30 Mbit/s in selected areas. The upgrade to 100 Mbit/s was complete in Melbourne by Christmas 2009, and launched the new DOCSIS 3.0 services on 1 December 2009 before the deadline.

ADSL internet
Naked DSL - A six-week trial of two kinds of naked DSL to "assess customer demand" was launched on 1 June 2010. 'Pure DSL' having the ability to receive incoming calls and make emergency calls, and 'Naked DSL' being offered without a dial tone.[125]

On 10 November 2006, Telstra made two major changes to their ADSL network. The first was an increase of wholesale ADSL speeds from 1.5 Mbit/s/256 kbit/s to 8 Mbit/s/384 kbit/s. Telstra also released an ADSL2+ broadband service offering download speeds of up to 24 Mbit/s from exchanges where competitors were already offering ADSL2+ services.

On 6 February 2008, Telstra announced that it would activate high-speed ADSL2+ broadband in a further 900 telephone exchanges serving 2.4 million consumers across every state and territory in Australia. Telstra also claimed that it has received assurances from the Government that it would not be forced to wholesale these services to other providers, and that the move came "after the Government made clear it did not consider a compelling case had been made for regulating third-party access to the service – an assurance sought by Telstra for more than one year".[126]

On 10 June 2008, it was announced that Telstra was in discussions with some wholesale customers in reference to wholesaling ADSL2+ services.[127]

Mobile broadband
Satellite internet
Dialup internet

Subscription television

Telstra's Hybrid Fibre Coax (HFC) (commonly referred to as "cable") network is one of the delivery systems used by the Australian Subscription Television provider Foxtel. Telstra owns 50% of Foxtel in a joint venture with News Corporation whom owns the other 50%. Telstra also resell Foxtel's "Digital" to customers in Foxtel's service area (as "Foxtel from Telstra").Telstra offers discounts for Telstra full-service fixed-line customers, with internet, pay TV and/or mobile services with Telstra. Such discounts can include free installation and the first month of the best Foxtel package (all channels) for free.[132]

Directories and advertising (Sensis)

Logo for Sensis, launched in 2014.

Telstra sold 70% of the Sensis business to American private equity firm Platinum Equity in March 2014. Sensis was previously Telstra's wholly owned advertising and directories arm. This subsidiary was originally known as National Directory Services (NDS), but subsequently renamed Pacific Access (since 1991), before changing its name to Sensis in August 2002.[133] Sensis publishes Australia's White Pages and Yellow Pages telephone directories, and in 2004 purchased the Trading Post, a classified advertising periodical. In 2008 management of the Trading Post was transferred to Telstra. In 2009 the printed Trading Post was shut down. Sensis also manages several websites including:

Sensis is responsible for Telstra's telephone directory assistance call centres – including 1223 ("Telstra Directory Assistance"), 12456 ("Call Connect"), 1225 ("International Directories") and 1234 ("1234" information service).[134]

In 2007, Sensis commissioned Amdocs to develop a customer interaction and database management system dubbed "iGen" to combine the existing GENESIS (also known as POST) system and the company's dozens of other internal customer and account systems into one interface. The new system would combine both Yellow Pages and White Pages directory information on one system.

The original cost of development and implementation was estimated at A$300 million which was funded by Telstra, but a twelve-month delay in deployment and lack of user acceptance testing almost doubled the original cost. "iGen" was eventually deployed to mass disapproval from employees who experienced extremely low performance and reduced capabilities from the new system.[135] In November 2009, the entire White Pages directory product reverted to the legacy system, GENESIS, after realisation by Sensis management that iGen was incapable of delivering expected performance.

In 2010, Sensis CEO Bruce Akhurst announced that the Yellow Pages had been switched over to iGen. In a blog posting he stated that they were ahead of the biggest system challenges and that iGen was "stable" and "operating effectively".[136]

Sensis announced job cuts in February 2013 of around 700 roles nationally. The decision to outsource roles to India was described as necessary for restructuring purposes in the digital age.[137]

Entertainment and content

In 2011, Telstra launched "Blurtl", a Facebook application that allows the user to leave audio messages on their Facebook walls.[138]

In April 2012, MOG, a paid subscription online music service and blog network, announced a partnership with Telstra offer their product in Australia - the first region outside of the United States to have access.[139] Telstra and MOG launched under the BigPond Music branding on 21 June 2012.[140]

Mobile networks

The following is a list of known active mobile networks used by Telstra:

Frequencies used on the Telstra Network
Frequency Protocol Class Notes
900 MHz GSM/EDGE 2G EDGE data capabilities are available on 100% of the GSM networks used
850 MHz UMTS/HSPA/HSPA+/DC-HSPA+ 3G Telstra Next G 3G network covering 99% of the Australian population
2100 MHz UMTS/HSPA/HSPA+/DC-HSPA+ 3G Supplemental to the 850 MHz network in areas of high network load.[141] This band was originally used for the 3GIS network in 50/50 partnership with Vodafone Hutchison Australia, and covered capital cities (Telstra ended this partnership on 31 August 2012.)
1800 MHz LTE 4G LTE roll-out in major capital cities and a significant range of regional centres has been completed, now covering most major metropolitan areas and major regional centres. Most previously existing GSM1800 Channels have been shut down in the new LTE coverage areas.
700 MHz LTE 4G Live as of 1 January 2015.

February 2011: Ericsson wins the LTE contract with Telstra. The LTE network is being deployed in capital city CBDs and select regional centres throughout 2011. It will operate at 1800Mhz and integrate with a HSPA+ service at 850 MHz. A dual mode (LTE/HSPA+) mobile broadband device has been developed for the network.[142]

January 2012: Initial major LTE rollout complete. Incremental rollout continues, widening the coverage in capital cities and introducing new LTE coverage to regional centres.

July 2012: Telstra commences retailing a pocket-sized battery powered 4G WiFi router (ZTE MF91) for prepaid data customers, locked to Telstra, complementing its range of 4G-capable devices. Apart from the ZTE MF91, the Telstra 4G hardware range now comprises two dual mode (4G/3G) voice-capable handsets by HTC and ZTE (available for purchase outright or on a post-paid plan), a Sierra USB wireless modem (outright or post-paid plan), a ZTE USB wireless modem (prepaid, locked to Telstra) and a Sierra 4G Wifi battery powered pocket-sized router (outright or post-paid plan). Telstra is reported to now be operating LTE facilities from more than 3,500 transmission sites.

April 2014: Telstra introduced a mobile broadband device from Huawei (E5786) with LTE Advanced capability.[143]

Next G Network

In 2005, Telstra announced a plan to upgrade its ageing networks and systems; which includes a new 3G network to replace the then current CDMA mobile network.[144][145]

The network was built between November 2005 and September 2006, and launched in October 2006. As of 2007, Next G was the largest mobile network in Australia, providing greater coverage than other 3G providers in Australia and over three times greater than any 2G provider in Australia.[109] In December 2008, the Next G Network was also the fastest mobile network in the World, delivering theoretical network speeds of up to 21Mbit/s [146] utilising features of HSPA+ and Dual-Carrier HSPA+. In February 2010, Telstra increased the speed up to 42Mbit/s making the Next G Network once again the fastest mobile network in the world.[147]

On 26 September 2011, Telstra launched its 4G 1800 MHz LTE network, claiming typical download speeds of up to 40Mbit/s.[148]

The network is currently used for BigPond's wireless broadband service and Telstra Mobile, which is Australia's largest mobile telephone service provider, in terms of both subscriptions[108] and coverage[109]

Network design

It was built to replace Telstra's CDMA network which operated from 1999 until 28 April 2008.[149] Telstra opted to use the 850 MHz band for Next G in preference to the more common 2100 MHz band, since it requires fewer base stations to provide coverage, providing a lower capital cost.[150] This network was implemented under contract by Ericsson as part of a project internally dubbed "Jersey" and launched on 6 October 2006.[151] HSPA technology was included in the network to provide Australia's first wide area wireless broadband network. The efficiency of the Next G network and its coverage has been challenged and scrutinised since its launch, requiring Telstra to go back to areas with average coverage, particularly rural towns to improve its coverage footprint. On 18 January 2008, Stephen Conroy, Minister for Communications, declined the proposal for Telstra to switch off its CDMA network on 28 January 2008, stating that whilst the Next G network provided coverage equal to or better than the CDMA network, the range of handsets available was not yet satisfactory.[152] On 15 April 2008, the Minister gave approval to close the CDMA network after 28 April 2008.[153] Telstra closed the network nationally during the early morning hours of 29 April 2008.[154]

Wikinews has related news: Telstra becomes the first in the world to switch to HSPA+ wireless Internet technology

While most wireless modems[155] offered by Telstra allow peak download speeds of up to 7.2 Mbit/s, a modem by Sierra Wireless was announced in 2009 that supported increased throughput.[156] The "USB 306" is marketed and sold by Telstra as the "Telstra Turbo 21 Modem", and was available in limited quantity in early 2009. By April, the "Turbo 21" was available to customers and offered peak download speeds of 21 Mbit/s, although actual speeds vary between 550kbit/s and 8Mbit/s.[157] As of June 2009, Next G network HSUPA upgrades in selected regional and metropolitan areas, combined with software updates for the "Turbo 21" modem, will allow peak uplink speeds of up to 5.76 Mbit/s.

[158]

4GX

On 1 January 2015, Telstra launched, what it calls "4GX": a 700 MHz based component of its mobile network claiming speeds of up to 75Mbit/s with compatible devices.[159]

Market position

Since the Australian telecommunications industry was deregulated in the early 1990s, Telstra has managed to remain the largest provider of telecommunications services[160] despite the emergence of its rival, Optus. A Harvard Business Review article from 2005 authored by a consultant to Telstra on this topic, reported "that a strategy of offering lower rates on some routes and at certain times of day, even though its prices, on average, were higher than its rivals", helped Telstra retain several points of market share it otherwise may have lost.[161]

In early 2011, Telstra successfully extended its market share lead by discounting its mobile phone products.[162]

As of 2013, Telstra's revenue was $25.5 billion,[163] Optus' was $8.9 billion,[164] and Vodafone's was $1.7 billion.[165]

Management

In May 2009, Solomon Trujillo stepped down as Chief Executive Officer in order to return to the United States. He was replaced by David Thodey.[166]

Year appointed CEO
1992 W. Frank Blount
1999 Ziggy Switkowski
2005 Solomon Trujillo
2009 David Thodey
2015 Andrew Penn[167]

International holdings

Year Name Type of ownership Comments
1992  Europe Telstra Europe 100% Telstra has been operating in Europe since 1992. Telstra Europe has a customer base of over 7000 customers, who buy data, voice and complex managed network and hosting services.[168]
2003  Hong Kong Reach Asian undersea cable 50% venture, with Pacific Century Cyberworks This partnership was created during the late 1990s telecommunications boom – it struggled and had its book value downgraded to zero by Telstra in February 2003. Reach's debt was renegotiated in 2004 and it was restructured to operate mainly as a vehicle for its owners' international requirements.
2005  Australia Adstream Australia 58% In early 2006 Telstra offers $20 million cash to increase its total stake from 33 to 58 percent.[169]
2006  People's Republic of China SouFun 51% SouFun was integrated into the Sensis business, providing Telstra with an entry point into China. It was sold to SouFun Holdings in late 2010.[170]
2008  United States Telstra Endeavour 100% Communications cable linking Sydney and Hawaii. The cable went live in October 2008,[171] with a capacity of 1.28 terabits per second in the future (currently at 80 gigabits per second.)
2008  People's Republic of China Norstar Media >50% Telstra acquired controlling stakes in the two businesses, Norstar Media and Autohome/PCPop, for an undisclosed amount.[172]
2008  People's Republic of China Autohome/PCPop >50% See above
2011  Australia iVision 100% Integrated telepresence video conferencing solutions
2011  India Telepresence Solutions Joint Venture with tata group Telstra expands global telepresence reach with partner Tata Communications[173]
2011  India Telstra Telecommunications Private Limited Joint venture with Microland Licence for long-distance and ISP data services in Bangalore, Calcutta, Chennai, Delhi, Hyderabad, Mumbai, and Pune[174]
2011  Singapore Telstra Singapore 100% Facilities Based Operator (FBO) licence allowing voice and data networks, systems and facilities. Also enables Telstra to build the local backbone required to support its plans for new cable submarine capacity to Singapore.
2011  Japan Telstra Japan K.K. 100% Own and operate large scale telecoms circuits and facilities in multiple cities and prefectures in Japan, along with products and services delivered over those facilities and networks.
2014  United States Ooyala 98% Provider of online video streaming technology and software.
2015  Indonesia Telkomtelstra 49% Provider of Network Application and Services to Indonesian enterprises, multi-nationals and Australian companies operating in Indonesia.
2015  Philippines 4G Partnership with San Miguel Corporation Joint Venture to roll out 4G voice and data networks to Philippines.
2015  United Kingdom Dr Foster Intelligence 100% Acquisition of Dr Foster Intelligence to form part of Telstra Health.

Selected events

WotNext

In January 2007 Telstra launched WotNext, a video-publishing website that allowed users to upload video. The video content was then sold to mobile users for A$1, which the uploader and Telstra split equally.[175] The website was shut down in December 2007 after a media backlash over uploaded semi-pornographic videos.[176]

Privacy investigation

On 12 July 2011, the Office of the Australian Information Commissioner (OAIC) released the findings of its investigation into a mailing list error that resulted in approximately 60,300 Telstra customers' personal information being sent to other customers. The Australian Privacy Commissioner Timothy Pilgrim said "Our investigation has confirmed that while Telstra breached the Privacy Act when the personal information of a number of its customers was disclosed to third parties; this incident was caused by a one-off human error. It was not a result of Telstra failing to have reasonable steps in place to protect the personal information of its customers, as required by the Privacy Act."

The government probe determined that Telstra had security measures in place to protect customer personal information involved in mail campaigns. These measures included privacy obligations in agreements with mailing houses, privacy impact assessments, and procedures to ensure staff handle personal information appropriately during mail campaigns.

"In this instance, taking into account the range of measures Telstra has in place for mail campaigns, I consider that the one-off human error that occurred does not mean that Telstra failed to comply with its obligation to take reasonable steps to protect the personal information of its customers. Therefore, I consider that Telstra has not breached this particular aspect of the Privacy Act", the privacy commissioner said.

The commissioner determined that Telstra had acted "immediately" to prevent further breaches, notify customers, and review its data security practices.

In the report, Pilgrim related that the Australian government is currently considering recommendations from the Australian Law Reform Commission to introduce mandatory data breach notification laws in Australia.

See also

References

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